The billion-dollar race

March 04, 2010

Congratulations to Illinois for being named a finalist in the Obama administration's Race to the Top program. If the state wins, it could get some $500 million for education reform.

OK. Now let's talk about Chicago's Public Schools race to find $1 billion just to keep the schools running. That's the deficit the Chicago schools face in 2010-2011. Last week, CEO Ron Huberman outlined spending cuts that have been made and sent out a plea for help.

The response from teachers, through their union? Forget it. Don't look at us.

"I want to make it clear that we will not agree to any proposal that either destroys our contract or fails to maintain the integrity of our pension system," Chicago Teachers Union President Marilyn Stewart said. "Nor will we tolerate the implied threats being made by Mr. Huberman that he may have to cut programs and services for our students or lay off teachers."

Well, here we go.

Huberman isn't making threats. He's talking about reality. There are enormous economic pressures on every level of government, from the cities to the schools to the state and to the feds. They have to run more efficiently. They have to run with the revenues available to them.

Consider: 69 percent of the Chicago school system's spending goes to salary and benefits. CPS has laid off 536 nonunion workers from its central office this year. It has required nonunion workers to take six unpaid furlough days. Next year, another 500 central office and citywide service workers will lose their jobs. Those still employed will have to take an additional three weeks off without pay.

Chicago Teachers Union members, though, are slated to get a 4 percent cost-of-living increase. With so-called step/lane increases, most will actually get about a 5.5 percent raise. The CPS contribution to the Chicago Teachers Pension Fund will nearly double in the next year, adding to the budget pressures.

No threat, just reality: The teachers have to accept a pay freeze or a much lower pay increase. They have to contribute more to their pension system. They have to support reforms to that system.

Those reforms should include increasing the retirement age, capping the maximum pension payout and slowing cost-of-living increases. The schools need to curb the growth in pension costs for current as well as future employees. What the state can't allow CPS to do is skip a pension contribution without substantially reducing its pension obligations.

CPS wants the state to pump more money into the pension fund. But what's the chance of that? The state has no money. It's behind on its payments to the schools. The state is more likely to reduce its funding for schools than it is to hike the pension contribution.

This comes at a tricky time. Stewart faces a stiff challenge in CTU elections in May. Her challengers may say she's not putting up enough resistance to management. Her rhetoric isn't likely to soften; opponents will try to out-tough her.

But the CTU has to be a big part of the solution. The Chicago school system is cutting administrative costs. The costs of providing teachers has to come in line with what the schools can afford.

We're all for the noble reform goals of the Obama administration. We hope Illinois gets a share of that pot. But you can't race to the top if the schoolhouse doors are locked.